Addressing the media after staging a walkout from the Tamil Nadu Assembly, Palaniswami claimed that the Enforcement Directorate (ED) had unearthed large-scale irregularities during its recent raids on TASMAC offices and its suppliers.

He accused the DMK government of attempting to suppress the findings and criticised Chief Minister M.K. Stalin and the Minister concerned for remaining silent on the issue.

"The government is trying to cover up the scam instead of coming clean. There has been no response from the Chief Minister or the Prohibition and Excise Minister. Why are they silent if they have nothing to hide?" Palaniswami asked.

The AIADMK leader alleged that TASMAC outlets were charging Rs 10 extra per liquor bottle, resulting in an estimated illegal collection of Rs 15 crore daily. "If this continues unchecked, the annual figure touches Rs 5,400 crore," he said, adding that the state exchequer and the public were being cheated in broad daylight.

Palaniswami further said the DMK government was "afraid" of the ED's investigation and was not allowing a proper debate on the issue in the Assembly. “We were not allowed to raise this issue in the House. The Speaker refused to give me the floor to speak about the scam,” he said.

Following this, AIADMK legislators, led by Palaniswami, staged a walkout in protest.

The walkout occurred during discussions on the demand for grants for the departments of electricity, prohibition, and excise. AIADMK MLA Natham R. Viswanathan spoke first, and Palaniswami sought to raise the TASMAC issue immediately after, but was denied permission by Speaker M. Appavu.

Palaniswami also criticised the government over frequent power outages across the state. “Several areas are suffering from unannounced power cuts, affecting both domestic consumers and industrial units. The DMK government is failing to ensure uninterrupted supply,” he said.

He recalled that during the AIADMK regime, the state had ensured quality power supply, especially to farmers and industries. “Now, the situation has deteriorated, and people are bearing the brunt,” he said.